Interesting quote by you bb...By your quote you now own shares in Hartcourt or plan to buy shares and have them go down so you can take a loss against other profitable stocks?
Your quote "HRCT has another purpose for me. I sell shares to offset gains in other stocks."
If so i have a math quiz for you..Lets take the first example, you now own shares of Hartcourt..lets say you bought 10,000 shares at .20 a share so you invested $2,000..
it's now worth $800...your out $1200...so now you sell those shares to offset $180.00 you would have paid on the $1200 capital gain at 15%....so now your only out $1020..(1200-180)
You are negative regarding Hartcourt you believe it is overpriced so lets say your right and it goes down to .04 now you can really offset your losses if you sell..Now your losses are $1600(2000-400)...Now you offset,because("that is your purpose of HRCT"), you now save $240 by offsetting 15% times 1600..but oops your net loss now is $1360..Looks like you should have sold at .08...
Second example, you buy now, hoping it goes down so you can take that offset loss...You buy 10,000 at .08 you invested $800..You hope your posts and negative reports drive the stock down to .04 so you can "offset" your gains..Okay your
out of pocket $400, but you gain back $60 by your offset(15% times 400)..But
oops again your net loss is $340..Seems to me you might want to re-think your offset strategy..
(one other thing i might mention if your "shorting" the stock then that is a different matter..I know i can't short this price stock with Schwab, but maybe you have your source..Just wonder if you admit your shorting the stock and SEC sees your posts over on R/B if they might question your motives for your posts..Just a thought.)
